Sir Keith Mills steps ups battle with Coutts over AIG

Sir Keith Mills, the millionaire founder of Air Miles and Nectar cards, has
stepped up his campaign against Coutts for compensation over the £65m of his
savings it invested with stricken US insurer AIG.

The entrepreneur has started legal action against the bank over what he alleges was poor advice that he should invest the money in AIG Life Premier bonds.

A Coutts spokesman denied the allegations. He added AIG has repaid half of all investors' money and guaranteed to repay the full capital.

His solicitors have served Coutts with a "letter of claim" – the first step before issuing negligence proceedings – after Sir Keith says he raised concerns about the investment in March 2008 after it was first made in December 2007.

The legal move follows Sir Keith's high-profile campaign to shame the bank into compensating other customers who also claim to have lost out on the AIG products.

The dispute centres on the AIG bonds which Sir Keith claims were sold as a low-risk and easy access. However, his claim alleges a large proportion of them were invested in illiquid and risky assets.

Sir Keith said: "Coutts said these bonds were an alternative to a traditional bank but the reality was that this investment was far riskier."